Current and Future Potential

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“I want to hire someone who has potential,” Sam described. “But, I need them to hit the ground running today.”

“What do you mean when you say, potential?” I asked.

“You know, they have the ability to grow, so as things get more complicated, they don’t get lost,” Sam replied.

“I need you to be more specific. You used the word, grow. Do you mean grow taller, measured in inches? You used the word, lost. Do you mean lost in the woods? If you really want to find someone with potential, your language will lead you to the qualities you look for in a candidate.”

“Yes, but you know what I mean,” Sam flatly stated.

“I can make assumptions, but they might be wrong.” I stopped, then started again. “Instead of looking at the person, let’s look at the work, specifically the context of the work. What does hit the ground running mean? Please use terms related to capability, decision making and problem solving.”

“Okay,” Sam was slow to piece things together. “The role, today, has certain problems to be solved and decisions to be made.”

“Stop,” I interrupted. “So, the candidate has to possess the actual capability to solve problems and make decisions without significant input or direction from you, today.”

“Yes, but, the candidate will still need some initial direction from me, just to find out how things work around here. We have certain processes unique to our company, so the person will need some orientation, initial training.”

“And, how long will you give them to learn this stuff in the beginning?”

“Easy,” Sam said. “Training last two weeks. If they haven’t demonstrated some initial capability by then, we might counsel them out during a probation period.”

“So, you cannot see the performance on day one, but you expect to see performance after two weeks, benefit of the doubt, four weeks or eight weeks? In that period of time, has their potential changed?” I pressed.

“No, potential doesn’t change that fast,” Sam responded.

“So, on day one, you see their actual capability, in a raw state, it is what it is. You need this person to learn and learn quickly, so that two weeks, four weeks, eight weeks from now, the candidate’s decision making and problem solving will be at a higher level, meaning they have current potential. The difference between actual capability today and current potential two weeks from now is initial orientation and training.”

“Yes, but I want more than that,” Sam said, almost complaining.

“Of course you do,” I furrowed my brow. “What you really want is future potential. Potential is not something that can be trained, it can only mature. And, you want to see that in a candidate?”

“It sounds like a tall order, but yes, that is what I want.”

“Then, what questions will you ask?”

Context of Decision Making

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“What is the difference between you and your team members, related to the role you play as their manager?” I asked.

“Well, I’m their boss. I provide direction, guidance, coaching. I delegate task activities,” Joan replied.

“Why you? Why doesn’t the team provide its own direction?”

“Well, they weren’t invited to the monthly meeting where the company sets that direction,” Joan smartly observed.

“But, this is the age of Zoom, why weren’t they invited to attend that meeting?” I pressed.

“But, it’s a highly interactive meeting. We can’t have ten more people asking questions. We would never get anything done in the meeting. Believe me, I know my team.”

“And, doesn’t the content of the meeting concern them? Are decisions made that will impact what they do day to day?”

“Yes, it impacts what they do, day to day, but in that company meeting we make adjustments to the overall goals and objectives for the year. It’s important to be flexible, agile. My team may have specific ideas (and questions) about technical issues day to day, but in that meeting, it’s not about technical issues, it’s about a new competitor that’s eating our market share, a new office across the state we are thinking about, a new product that our customers have been asking about.”

“So, the context discussion in that meeting is different than the context your team works in?”

“Yes, that’s it,” Joan agreed.

“So the difference between you and your team members, related to the role you play as their manager, is the context in which you work, meaning the context in which you make decisions and solve problems?” I prodded. “Your decisions impact their decisions, but the difference is the timespan of your decisions vs the timespan of their decisions.”

Joan continued to nod her head. “And, the difference between me and my manager is the same,” she replied. “My manager makes decisions that impact me, but the timespan of my manager’s context is even further in the future than mine.”

“And, so, we begin to see the structure of layers in an organization,” I said, “based on distinct levels of decision making, measured in timespan.”

Traits of a Leader?

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“You look like you have a question,” I said.

“I have been studying leadership, but it is a bit confusing,” Maria replied. “So, many books, so many perspectives. You would think if I read all the books, I would know what traits I should possess to be an effective leader?”

I nodded. “So, it would seem. Any study of leadership rarely considers the context of leadership, so the discussion appears jumbled and confused. Leadership never stands alone, it is always in a context.”

“Okay?”

“Was Churchill considered a great leader?” I asked.

“Yes, for those of us who have seen the movie,” Maria chuckled.

“Yes, in wartime, but not so much in peacetime. To truly understand leadership, first you have to understand the context. Connect the context and things make more sense. Most often, I speak about managerial leadership. But, there are other contexts, parental leadership, political leadership, military leadership, spiritual leadership, academic leadership. The context will demand the qualities necessary for effective leadership in that circumstance, and eschew those characteristics that detract.”

Maria nodded, so I continued. “Before we look at the person (qualities and traits), first we have to look at the context. The biggest mistake most companies make in hiring is to look at the candidate without understanding the work in the role. It’s all about the work.”

What is Competence?

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To be effective requires competence. But, what is competence? Lee Thayer said, “The best measure of performance is performance.” It sounds like a circular reference (illegal on an Excel spreadsheet), but his intent was focused. When measuring performance, do not be mislead by surrounding statistics, the best measure of performance is performance.

But, what of competence. Here, the circular reference breaks down. One of the gifts that Elliott gave us was the Four Absolutes Required for Success (in any role, no matter the discipline).

  • Capability.
  • Skill, broken into technical knowledge and practiced performance.
  • Interest, passion (value for the work).
  • Required behaviors

Competence is a combination of Capability and Skill. If I do not have the capability for the work, no amount of developmental training will be helpful. And, I don’t have the skill, you will never see my capability. Competence is a combination of both.

Interest, or passion for the work will influence the amount of time for practice. The more interested I am, the more time I will spend in practice. And if I don’t practice a skill, the skill goes away, competence diminishes.

There is also a set of required behaviors. Practice arrives with many qualities, frequency of practice, duration of practice, depth of practice, accuracy of practice. Accuracy of practice relates to required behaviors. Practice doesn’t make perfect, only perfect practice makes perfect.

While the best measure of performance is performance, we can understand competence with a bit more detail.

Bone-headedness

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Mark nodded, head-bob up and down. “It would seem very different for us to talk about performance issues in the executive management team. I am not even sure how I would start.”

“Why don’t you start with yourself?” I asked. “I am absolutely certain there are some shortcomings in the company that you can own, where you could have made a different decision, or handled something in a different way. Why don’t you start with yourself?”

“I suppose if I can’t think of something, you will say that I am in denial,” Mark replied.

My turn to nod. “We are often in denial. The sooner we confess to a problem, especially our contribution to a problem, the faster we can get on with solving it, learning from it, avoiding it in the future.” I stopped. “So, think about a decision you made that was hasty, not thought through well enough, that now, with 20-20 hindsight, you can clearly identify as bone-headed. What would it sound like to ask for feedback from your executive team?

“I want you to think about something,” I continued. “When your team makes a bone-headed decision, it costs pennies. When you make a bone-headed decision, it can cost millions.”

Talking About Performance Issues

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Mark thought long and hard before he responded. “But, bringing up her underperformance in front of everyone else is not my style.”

“You’re not talking about her underperformance in public OR private,” I said.

“You’re right, I should talk to her in private,” Mark shrugged.

“I didn’t say either way, but why are you so uncomfortable bringing up performance issues in the executive management team?”

“Well, you know, it would be uncomfortable,” Mark admitted.

“Of course, it would be uncomfortable. Do you convene your executive team to talk about comfortable issues? If there is no contention, no conflict, no active discussion, what would be the point?”

“We are just not used to that. I would like to think we treat each other with respect.”

“You can be respectful and still hold someone to account for their performance,” I insisted. “The reason you are not used to talking about performance, with respect, is that you don’t practice it.”

Under the Rug

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“I had such high hopes for her,” Mark explained. “We watched her, promoted her to our executive management team, encouraged her. And, she is failing. I don’t know what to do. I don’t want to dampen her spirits if there is anything we can do to save her.”

“Have you talked to her directly, about her underperformance?” I asked.

“Well, we have been kind of waiting until the end of the first quarter, keeping our fingers crossed.”

“Have you tried to bring her underperformance out into the open?”

Mark shook his head. “No, in fact, I asked everyone NOT talk about it in our weekly management meeting. I don’t want to discourage her. Do you know how difficult it is to find someone of her caliber?”

“Just to be clear,” I replied. “Now, that you have moved from a state of denial, you are still willing to hide the problem, not discuss it or actively look the other way?”

Mark tried to speak, but he knew how any response would sound.

Accountability and Responsibility

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I often hear the words “accountability” and “responsibility” used interchangeably. I have to interject, the words are different.

Accountability refers to the output, the deliverable, the objective, the goal. That output, will be judged by someone as complete, satisfied, achieved.

Responsibility, however, is an internal feeling. It is the relationship between the person and their own social conscience. In most cases, this is a positive feeling that supports the behavior engaged in pursuit of a specific accountability. So, it’s a good thing.

Moreover, in looking towards a leader, I would endeavor to find a sense of responsibility in support of the expected accountability. When I look at organizational context (culture), I look for those elements that instill a sense of responsibility toward the accountability we seek to achieve. I look for this, not only in designated leaders, but in the minds (and hearts) of team members. Not too much to ask for, from customers and vendors.

How Many Organizational Layers?

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From the Ask Tom mailbag –

Question:
When you talk about context, organizational context, I assume you mean organizational structure. We have team members and supervisors, managers and executive managers. How many layers should we have? Is it best to have fewer layers, a flat organization or more layers?

Response:
As any good consultant knows, it depends. First, an organization should have no more organizational layers than is necessary, so, it depends on what is necessary. And what is necessary depends on the complexity of the problems to be solved and the decisions to be made to effectively deliver the product or service to the customer.

I watch organizations blow up into morbid obesity because they have no framework on which to base that decision – how many layers? And, who should be who’s manager? How many team members can a manager manage? What do we expect from this manager vs that manager?

Timespan.
What is the timespan of the decisions to be made and the problems to be solved? Think about this pattern –

  • 1 day to 3 months – Level I
  • 3 months to 12 months – Level II
  • 12 months to 24 months – Level III
  • 2 years to 5 years – Level IV
  • 5 years to 10 years – Level V

That’s how many layers you need, and only as many as you need. But, now you have a framework in which to make that decision.

Most entrepreneurs stay within the first two levels, with goals and objectives that rarely extend beyond 12 months. Those with aspirations for larger organizations, with higher revenues, more market clout, have to consider the impact of decisions and problems that extend two years and beyond.

There is a subtle seduction that occurs, however. Any entrepreneur with the intent to take their company to the next level, must first achieve mastery at their current level while sowing the seeds of problems for the next level.

Accountability and Authority

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From the Ask Tom mailbag –

Question:
You talk about setting context, that context is the crucible in which management behaviors exist. How do you more specifically define that context and where should managers begin?

Response:
Every role in an organization exists with other roles. Individual action, more specifically, individual accomplishment is a myth. No one is an island. Every organizational behavior affects another part of the organization. Context is the way we define those working relationships.

The two most critical elements to be defined in a working relationship are accountability and authority. To be effective in any role relationship requires that each person understands the accountability (output) and authority in that relationship.

In a given relationship between a manager and a team member, who has the authority to make a decision about the way a problem should be solved? If you suggested the manager, you would be correct.

But, might that lead to autocratic decision making, where a manager might run rough-shod over the team?

It might, were it not for a specific accountability. The manager has the authority to make the decision, but also the accountability to collect relevant data around that decision, which, in many cases will come directly from the team. Theoretical conditions must be matched with actual conditions. Theoretical materials must be matched with actual materials on hand, available consumables, machine uptime, even temperature and humidity. Along with every authority, must come accountability.

Editor’s note – this is not usually the case with a government oversight committee, who would like to think they have all the authority with no accountability. Every authority comes with accountability.